This week’s headlines: Change following FCA law changes and Rayner returning to the role of Housing Secretary.
Check out these and other industry updates below:
FCA compliance changes: Stonebridge
The FCA’s new affordability rules are helping more borrowers switch to new mortgage lenders instead of staying with their existing providers, with Stonebridge research showing 98% of changed affordability tests were used for external credit by Q1 2026.
The changes have enabled borrowers to secure larger loans at lower interest rates, with advisers playing a key role in helping customers find better deals.
Barclays, Halifax, HSBC and TSB rate hikes up to 20bps
Major lenders including Barclays, Halifax, HSBC, TSB and Skipton increased selected mortgage rates by 20 basis points as rising exchange rates continue to drive up funding costs.
Industry experts expect further rate cuts in the coming days, warning that the country’s ongoing tensions and inflationary pressures reduce the chances of an interest rate cut.
Rayner returns to the post of Housing Secretary
Angela Rayner is back as Housing Secretary in Prime Minister Andy Burnham’s new Cabinet, replacing Steve Reed after less than a year in the role.
His appointment comes as Burnham prioritizes housing, with plans to speed up housebuilding and deliver the biggest council housing program since the post-war period.
NatWest follows rate hikes by major lenders
NatWest is increasing the rates on selected residential and commercial property by 20 basis points from tomorrow, joining a wave of major lenders reselling their products this week.
While many lenders are raising rates due to higher financing costs, Shawbrook has bucked the trend with some cuts, although Keystone has increased select purchase prices to accommodate it.
Santander becomes the latest lender to raise rates
Santander is increasing fixed loan rates across its new business and multi-brand transfers from 22 July, while expanding its product offering with new 10-year deals and additional new build options.
Accord Mortgages is also raising many residential and buy-to-let rates, although some residential products will see reductions, while Newcastle for Intermediaries is also relaunching its joint single borrower mortgage range.
Santander UK’s mortgage book increased by £35.7bn after the TSB deal
Santander UK’s mortgage book grew by £35.7bn to £204.7bn following its acquisition of TSB, making it the UK’s fourth largest lender.
The bank reported strong growth in loans, with total mortgage lending rising to £14.7bn in the first half of 2026, while mortgages remained low and asset quality remained strong.
FOS appoints new chief executive and ombudsman
The Financial Ombudsman Service (FOS) has appointed Jenny Simmonds as permanent chief executive and James Dipple-Johnstone as permanent chief ombudsman following an open recruitment process.
The pair have led the agency through a period of change, including digitalisation, changes to payments and efforts to improve the UK’s rehabilitation system.
Burnham made the first speech as prime minister, Reed came down as part of the House
Andy Burnham has become the UK’s new prime minister and has pledged to publish a 10-year plan for Britain later this year, including a renewed focus on housing and increasing the delivery of council housing.
This step follows the departure of Mr. Steve Reed as housing secretary, industry figures want to have clear plans to deal with the housing shortage and to achieve the government’s goals of building 1.5 million houses.
Vida introduces Next Chapter Lending
Vida has rebranded its end-of-life mortgage proposition as Next Chapter Lending, introducing an updated approach to financing older first-time buyers, home movers and borrowers transitioning into retirement.
The changes provide clear guidance on affordability for sellers, including how income is assessed near retirement and the maximum loan term ending before age 86.
Finova promises ‘no more keying’ with one-click AI software
Finova is launching an AI-powered tool that will allow brokers to submit mortgage applications across lender portals without re-entering customer data.
The technology aims to reduce administration, reduce errors and free up advisers’ time by automatically transferring information to the merchant’s systems while maintaining final approval from the user.
